Which of the Following Is Necessary for Management Accounting Information

question 29

Multiple Choice

Which of the following is necessary for management accounting information to be useful?

• A) It must report to external users.
• B) It must develop a framework of principles and guidelines.
• C) It must adapt to accommodate changes in the business environment.
• D) It must focus on the enterprise in its entirety.

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Definitions:

Marginal Tax Bracket

The tax rate that applies to the last dollar of the taxpayer's income, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Equivalent Taxable Yield

The pretax yield on a taxable bond providing an after-tax yield equal to the rate on a tax-exempt municipal bond.

Yield to Maturity

The total return anticipated on a bond if the bond is held until it matures, including all interest payments and the return of principal.